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Published in Debt Advice Features on Wednesday, November 29 2006 by Open Doors Money
If the Official Receiver feels that the person who is bankrupt has been dishonest or can be blamed for their position then the Official Receiver will report this to the court and ask for a “Bankruptcy Restriction Order (BRO) to be made against the person.
The court will consider the report and decide if it warrants a BRO to be made, if this is the case then the bankrupt will be subject to bankruptcy and its restrictions for a period of a minimum of 2 years and to a maximum of 15 years.
The restrictions are set out in insolvency law, which every undischarged bankrupt is subject to when they are made bankrupt. The BRO will delay the persons discharge date for the period set out in the order itself. The restrictions include the following:-
- You must not obtain credit of over £500 without disclosing you are bankrupt
- You must not trade under any other name without disclosing to everyone you do business with that you are bankrupt
- You may not take part in the formation, promotion or management of a limited company without the courts permission. (You may apply to the court for this permission)
- You may not hold certain public offices, such as Member of Parliament in England and Wales.
- You may not be a Trustee of a Charity.
- You may not act as an Insolvency Practitioner.
There are other restrictions that are not included in Insolvency Law, these such restrictions lie with the associations themselves, such as public sector employments, working for financial institutions, becoming a solicitor, accountant, being a member of a guild. You must take this up with the parties who you may be associated with.
Another restriction include, problems purchasing homes, in addition living in rented accommodation can prove difficult when a landlord or landlady will not allow people who are bankrupt to be one of their tenants.
A Bankruptcy Restriction Order basically means that you could find yourself being bankrupt for anywhere between 2 to 15 years.
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